Greetings, SAP Finance Staff.
Hope everything is going well and that everyone is safe. As we begin to recover from the COVID-19 pandemic and resume our regular lives, I thought it could be helpful to share a feature of SAP Financials that many of us may not be aware of.
A necessary step in the month-end closing process is the automatic clearing of client open items. Simply enough, an accountant manually reconciles customer receipts with bills using F-32 or another clearing T code. When the volume of receipts and invoices is very great, this might turn into a tedious and time-consuming task.
To give an example from previous employers where I worked, clearing more than 100,000 receipt papers that came from multiple sources, such as direct booking in SAP, uploading of receipts, and client payments made through KIOSK, took a significant amount of time. It was a difficult task that took 3–4 man days to finish. We were forced to rely on bespoke automatic clearing, which groups several grouping criteria and the FIFO approach to clear customer invoices and receipts. It is crucial to remember that prompt clearing of open customer accounts is crucial, especially when it comes to FINT (interest calculation on open A/R items).
F.13 is SAP’s basic option for automatic clearing, and it allows for the clearing of open items for customers, vendors, and GL, but it has some restrictions.
F.13’s drawbacks include:
- It prohibits clearing using the FIFO technique, which requires that the oldest invoices be taken into account first.
- It does not permit the partial clearing of client receipts against invoices, for instance, if an invoice is for $1,000 and only $650 was paid, F.13 does not clear such receipts.
- F.13 can also be used for supplier/GL clearing, therefore it is not just for customer clearing.
Due to the aforementioned restrictions in the typical automated clearing programme, the majority of businesses are forced to rely on customised programmes to perform automatic clearing of client receivables and receipts, which requires a lot of time and work.
Customers have access to the country-specific automatic clearance programme J3RCALD that SAP has made available. J3RCALD execution can be enabled by SAP experts with a minimum of change.
J3RCALD is accessible from the SAP Menu way below.
Path in J3RCALD SAP Menu
Numerous features of this programme enable businesses to undertake automatic clearing of receivables against client receipts.
How does J3RCALD provide?
- It allows clearing of invoices against receipts on a First in first out (FIFO) basis. This indicates that the oldest posting date on the invoice will be cleared against the receipt document first. The remainder of this blog post will go into greater depth about this functionality.
- Open objects may be partially cleared using the J3RCALD application. a customer with a single invoice for $1,000 and a receipt for $700. The clearing will be handled by the J3RCALD programme, which will also create a residual item line in the client ledger for the remaining $300 USD.
- The J3RCALD software provides a simple user interface that is dedicated to consumers, and it allows for the selection of open customer products based on key date selection.
- Customers’ invoices can be chosen for a specific range of posting/document dates, and choosing a currency is required.
- Filtering of customer payments and collections can be done by entering posting and document dates.
- The J3RCALD programme also provides a number of options for generating clearing documents, such as one invoice and one payment, multiple invoices and numerous payments (where only one clearing document would be produced), etc.
- Using the option for separate GL Accounts only, you may also decide to delete any open objects that contain different control accounts.
Walkthrough of the Fix:
The configuration overview and a thorough explanation of J3RCALD execution are both included in the solution walkthrough.
This application requires very little setting, as I already explained. Setting the additional clearing rule in OB74 first requires the following settings. I’ve grouped open customer items using VERTNs (contract numbers). Many businesses utilise the ZUONR assignment number field to aggregate customer open items. As needed, you can add additional clearing rules.
Additional Clearing Rules, OB74
To establish sorting criteria for the deletion of customer open items, one additional configuration is necessary. According to SAP Note 2471260, settings for Account type D must be made in O7F6. The following fields, in any order, must appear in the sort fields:
BUDAT (Posting date) (Posting date)
BLDAT (Document date) (Document date)
BUZEI (Document item) (Document item)
BELNR (Document number) (Document number)
To add the above fields, you can go as indicated below.
IMG Path O7F6 Sorting Rules
As seen in the screenshot up above, sorting fields that SAP mandates have been added.
Please take note that the Invoice and Payment fields in OB74 must contain the identical values for them to be expected to clear; otherwise, clearing will not take place. My postings for client invoices and receipts in the example to follow are based on the Contract number field BSEG-VERTN.
We’ll use a real-world customer as our example, for whom two contracts have been created and billing has been completed for each. As seen in the screenshot below, this customer has two contracts, numbers 11000002 and 1100003, which have posted invoices and receipts against them.
Overview of FBL5N
We will assess the outstanding issues under Contract 11000002 as
Explicit FBL5N Open Items
The J3RCALD input parameters are shown in the below screenshot and are discussed in depth.
Selection Screen for J3RCALD
The following explains the second section of the J3RCALD selection screen:
Second Section of J3RCALD
The system will now clear Receipt 1400000007 using FIFO by choosing Invoice number 7100000012. When we are happy with the cleared result from running the programme in Test Mode, we will run it again in Call transaction mode.
You can choose to run the call transaction programme as batch input, in which case the system will build a batch that can be processed in SM35. This option will publish the clearing instantly.
As can be seen from the screenshot above, J3RCALD chose the oldest invoice (7100000021), which was issued in January 2022, first. The other two invoices were posted after January 2022. Now, the application will be run in call transaction mode.
Selection for J3RCALD Posting Run
The output after clearance posting is complete is shown below. A clearing document was posted that satisfied the FIFO-based criterion of clearing customer open items by clearing the oldest invoice in the customer ledger for the specified contract against the oldest recorded receipt.
Posting Run Output for J3RCALD
Clearing in parts:
Now let’s look at an illustration of a partial receipt versus an invoice. The earliest invoice for contract number 11000003 and client 60000001 is 7100000025. Two open payments, 1400000008 and 1400000009, are present. According to posting date criteria, the oldest recorded receipt is 1400000009.
We’ll go with the “One Invoice and One Payment” option. Receipt document number 1400000009 is worth 160,000 SAR.
Overview of FBL5N Partial Clearing Open Items
We’ll now examine J3RCALD’s test mode output.
Output for J3RCALD – Partial Payment
Out of the three invoices that were accessible, the J3RCALD software selected the oldest invoice (7100000025) and the oldest receipt. A residual balance of 20,000 SAR has also been produced.
Now, the application will run in call transaction mode.
Posting Output for J3RCALD—Partial Clearing
After clearing the invoice and receiving payment, J3RCALD established a residual balance in the customer ledger for 20,000 SAR.
Viewing the Cleared Document FB03 After a Partial Clearing
The J3RCALD software is really helpful and helps speed up the month-end closing procedure in businesses. It can make life easier for company users who spend hours picking up open things from clients.
There is always space for improvement, so if you notice any errors in this information, please let me know:). Your comments on the document will help me make further improvements, so please do so.
SAP Important Notes:
The SAP notes related to J3RCALD functionality are listed below.
FIFO technique is not used by J3RCALD to clear open items, according to SAP RU-FI bug 2471260
J3RCALD CPS, 2971302. incorrect connections to the selection’s remaining elements.
Error when clearing documents with a large amount: 2217847 – J3RCALD(K)